MONEY DIARIES| FUNDRISE
I’ve been wanting to invest for quite some time now. But it has been pretty intimidating, especially considering the fact that the first time I tried to invest in the stock market through the round-up to the nearest dollar app; I lost $17 in about three days. Might not seem like a lot, but literally every time I looked at my phone I had lost a dollar and I was not here for it to say the least.
There are so many options nowadays, but I wanted something more… legit? if that’s even the right word to use. I have done some research and the option I decided to go with for now is crowd funded Real Estate; Fundrise to be exact. The main reason I went with them is because you only need $500 to start an account (most other crowdfunded platforms require about $10,000 to start an account)
So I invested $500 in Fundrise and this is how the process went.
QUICK NOTES ON FUNDRISE (FOUND ON THEIR WEBSITE)
They invest in private Real Estate
If at any time during your first 90 days you’re not satisfied, we will buy your investment back at the original investment amount.
You earn returns primarily in two ways: (A) via quarterly dividends and (B) via appreciation in the value of the shares of your investment.
Dividends are typically distributed in the middle of the month following the end of each quarter, e.g. mid-April for dividends earned during the first quarter.
Fundrise is intended for investors who have a minimum time horizon of approximately five years. However, we have adopted a redemption plan whereby an investor may obtain liquidity monthly.
[The fees] The offerings in this plan pay a 0.85% annual asset management fee. In addition, investors pay a 0.15% annual investment advisory fee, which may be waived under certain circumstances.
BASE ON MY RESEARCH HERE ARE SOME OF THE PROS AND CONS:
You’re money is tied into this for long period of times (That could be on the negative side for you since getting access to your money quickly is not guaranteed)
If you want to be a long term investor but don’t really want to invest directly in the stock market Fundrise might be a good option for you
Your money is not invested in one property but multiple ones
It’s low maintenance
I WANTED TO SHARE THIS LITTLE EXPERIMENT. SO YOU GUYS CAN FIGURE OUT IF THIS IS SOMETHING YOU WOULD BE INTERESTED IN AND IF I LOSE MY MONEY AT LEAST WE DON’T ALL HAVE TO TAKE THE “L”, I’LL TAKE THIS ONE FOR THE TEAM.
STEP 1| SETING UP THE ACCOUNT
When you go onto the website they’ll ask you some basic question like your email and such.
STEP 2|CHOOSING YOUR PORTFOLIO
You get to choose between three different types of accounts . I went with the starter account level that allowed me to invest the minimum $500.
This is how the website looks on the user side it is pretty easy to navigate, which I really appreciate.
Step 4| We wait
I’ll share an update blog post on this next month to see how the account changed and from there I’ll share a post during the quarterly dividends shares.
I am so excited for this! I hope this will help you decide if Fundrise is something for you. I know I was scared to invest but a universal tip I always hear is the sooner the better. But I still want to be smart with my money!
Let’s do this.
*This is a note to make it clear that I am NOT a financial advisor. The purpose of these post is to solely share my experience.